Carthy addresses Parliament on CCCTB proposal
Sinn Féin MEP Matt Carthy has addressed MEPs regarding the EU proposal for a common consolidated corporate tax base (CCCTB) during a debate of the plenary session in Strasbourg this evening, Wednesday. Sinn Féin MEPs will vote against the proposals tomorrow.
Addressing MEPs, Carthy said:
"It is clear that the current system of taxing multinational corporations isn't working.
"The so-called arms-length principle is out of date and ineffective. But for unitary taxation to work effectively as a means to end profit-shifting, it needs to be global.
"My main concern is that Member States are being asked to transfer further powers to the Commission in exchange for the promise that this new system will end the ability of multinationals to shift profits – but shortcomings in the proposal mean this goal is unlikely to be achieved.
"Profit-shifting outside of the EU is not addressed at all and it will actually increase the incentive for multinationals to shift profits outside the EU. By creating a common tax base across the EU, the proposal will in fact promote a race to the bottom on tax rates, because the headline rate itself will be the only measure left for Member States to compete on.
"The Irish government has signalled its concerns over this proposal and no doubt will continue to do so.
"At the same time the Irish government needs to act now to end the dangerous and unsustainable situation in which it actively markets the Irish state as a tax avoidance hub, and in which our public finances are severely over-reliant on the corporation tax receipts of a handful of multinationals."